Coxs Bazar International University

Course Plan
BBA Program
Major in Finance
Spring Semester-2017
Course Code: BBA-105
Batch: 1st
Course Title: Corporate Finance
Course Instructor:
Kazi Noor-E- Jannat
BBA (CU), MBA (CU).
Lecturer
Faculty of Business Administration
Contact no: 01812853953
E-mail: Kjannat8@gmail.com

COURSE OBJECTIVES
The primary objective is to provide a framework, concept and tools for analyzing financial decisions
based on fundamental principles of modern financial theory. The approach is rigorous and analytical.
After completion of this course student will be able to :
-Describe modern corporate principles of corporate finance.
-Learn different topics like:
-Discounted Cash flow technique.
-Capital Budgeting and Valuation.
-Investment Decisions Under uncertainty
-Capital asset Pricing
-Options
-Market Efficiency
-Critically assess the reasons behind mergers and acquisitions and their welfare implications.
-To analyze the corporate decision making implication from the behavioral perspective.
-To analyze corporate financial policy including capital structure, cost of capital, dividend policy.
Course Materials:
Corporate Finance S. A. Ross, R.W. Westerfield & Jeffery Jaffe
Fundamental of corporate Finance Ross, Westerfield & Jordon
Evaluation Procedure
Contents Allocated Marks
(in 100)
Attendance 10
Tutorial 10
Class Performance & Assignments 10
Viva/ presentation 10
Mid-Term 20
Final Exam 40

Please Turn Over

 Course Outline:

Chronology Chronology of lectures

of lessons

1-2 Chapter1
Introduction to Corporate Finance
What is Corporate finance
The corporate firm
The goal of the financial management
The goal of financial management
The agency problem and control of the corporation
3-4 Chapter 2
Financial Statement and Cash flow
Preparing the pro forma Balance sheet
preparing the pro forma income statement
The cash flow statement
The cash budget
The financial planning process
5 Chapter 3
Making Capital investment decision
Incremental cash flow
inflation and capital budgeting
Investments of unequal lives replacement decisions
Equivalent annual cost method
investment decision under capital rationing
6-8 Chapter 4
Capital Structure Theory and Policy
Pie theory
MM proposition 1 & 2
Firm value and financial leverage
Capital structure and cost of capital
Debt signalling
pecking order theory explaining financial choices
9 Class test
10-12 Chapter 5
Dividend Policies and Other payouts
Types of dividend
Methods of dividend payment
Dividend versus capital gains
Dividend and firm value
Real world factors favouring a high dividend policy
A resolution of real world factors
Ex-dividend stock price behaviour
Common stock repurchase
Stock dividend and stock split
13-15 Chapter 6
Valuation and capital budgeting for the levered firm
APV Approach
Free cash flow to equity approach
 WACC method
Beta & leverage

16 Class test
17-19 Chapter 7
Mergers and Acquisition
Basic Form of Acquisitions
Motives for merging
Types of merger
Side Effect of merging
The NPV of a Merger
LBOs and Divestitures
Diversification
Forms of acquisition
Tax forms of acquisition
Accounting for acquisition
Rationale for mergers and takeovers-Synergy, sources of
synergy.
Defensive technique

20-22 Chapter 8
Corporate Restructuring and Financial distress
Corporate Restructuring and control
Asset engineering and financial structure
Financial distress and bankruptcy
What happens in financial distress
Liquidation and Reorganization
Indicators of financial distress.
Altmans Model Z score
CRG score.

26 Class test
33-35 Class test
Presentation

Class attendance policy: Students class attendance is regarded as an essential part of the course
requirement. The expected class attendance is 90 percent. However a student shall not be allowed
to sit for the exam if his/her class attendance is below 70 percent for per semester.

Retake policy:
Students are allowed to take re-take exams if they fail or obtain less than 40% in any of the
courses. Students can attend the Improvement exam consists of 40 marks or they can take the
whole course again if they obtain less than 60 marks. In such case the course will be designated as
recourse.
Grading Policy: The letter grading are calculated in the following manner
Grades are converted into Grade Point Average (GPA) and ultimately into Cumulative
Grade Point Average (CGPA) on the basis of established rules.

Weekly Class Schedule:

Day Time Room No.

Monday 9am-12pm 304

Consultation hour: Depends on Students special needs.